Prosecutors boast of 'a hit on the mob'

CaptionFrank J. Calabrese Sr.

FBI photo

Convicted mob hitman Frank Calabrese Sr. has died in a federal prison in North Carolina. He was convicted in 2007 during the Operation Family Secrets trial. Calabrese was a loan shark who, according to witnesses, doubled as a hit man. He was found responsible for seven mob murders. Witnesses,...

Convicted mob hitman Frank Calabrese Sr. has died in a federal prison in North Carolina. He was convicted in 2007 during the Operation Family Secrets trial. Calabrese was a loan shark who, according to witnesses, doubled as a hit man. He was found responsible for seven mob murders. Witnesses,... (FBI photo)

James Marcello, of Lombard, was believed to be the highest-ranking mobster felled by the 2007 Family Secrets mob conspiracy trial, and he was held responsible for the killings of Anthony and Michael Spilotro -- two brothers found battered and buried in an Indiana cornfield in 1986.

James Marcello, of Lombard, was believed to be the highest-ranking mobster felled by the 2007 Family Secrets mob conspiracy trial, and he was held responsible for the killings of Anthony and Michael Spilotro -- two brothers found battered and buried in an Indiana cornfield in 1986. (Carl Wagner, Chicago Tribune)

Joseph "Joey the Clown" Lombardo, allegedly the capo of a Chicago mob "street crew," was blamed for the September 1974 murder of businessman Daniel Seifert, a federal witness who was hunted down and shotgunned by masked gunmen. Lombardo was convicted in 2007 and is serving a life sentence.

Joseph "Joey the Clown" Lombardo, allegedly the capo of a Chicago mob "street crew," was blamed for the September 1974 murder of businessman Daniel Seifert, a federal witness who was hunted down and shotgunned by masked gunmen. Lombardo was convicted in 2007 and is serving a life sentence. (Chicago Police Dept.)

Michael Spilotro, left, and his brother, Tony, walk out of court on March 18, 1983. Three years later they found dead. Tony Spilotro, the mob's top man in Las Vegas, was the target of a mob "hit," authorities say. His body and that of his brother, Michael, were found buried in an Indiana...

Michael Spilotro, left, and his brother, Tony, walk out of court on March 18, 1983. Three years later they found dead. Tony Spilotro, the mob's top man in Las Vegas, was the target of a mob "hit," authorities say. His body and that of his brother, Michael, were found buried in an Indiana... (Phil Greer)

Joseph Venezia, of Hillside, leaves court in 2005 after U.S. Atty. Patrick Fitzgerald and FBI officials announced arrests and criminal charges against more than a dozen defendants stemming the "Operation Family Secrets" investigation.

Joseph Venezia, of Hillside, leaves court in 2005 after U.S. Atty. Patrick Fitzgerald and FBI officials announced arrests and criminal charges against more than a dozen defendants stemming the "Operation Family Secrets" investigation. (Phil Velasquez, Chicago Tribune)

In one of the biggest strikes in Chicago's history against the mob, federal authorities today began rounding up alleged organized crime figuresincluding outfit boss Joseph "The Clown" Lombardoin connection with a string of 18 unsolved murders and one attempted murder dating back to 1970.

In the culmination of what officials dubbed "Operation Family Secrets," a federal racketing indictment unsealed this morning took direct aim at Chicago's three dominant mob chapters: The Grand Avenue crew of Lombardo; the Melrose Park crew of brothers Jimmy and Michael Marcello, and the 26th Street crew of imprisoned mobsters Frank Calabrese Sr. and his brother, Nicholas, who has turned mob informant.

Lombardo, 75, of Chicago, remains at large, authorities said. Lombardo previously was convicted in U.S. District Court in Chicago in another major mob investigation. He was released from prison in 1992.

Another suspect was found dead of apparent natural causes along with a substantial amount of cash and checksin a Kane County hotel room, while a third is being sought in Florida.

Everyone else named in the indictment is either under arrest or about to be arrested.

"This unprecedented indictment put a `hit' on the mob," said U.S. Atty. Patrick Fitzgerald. "It is remarkable for both the breadth of the murders charged and for naming the entire Chicago Outfit as a criminal enterprise under the anti-racketeering law."

Tony Spilotro, 48, a Chicago mob enforcer, ruled Las Vegas in the 1970s and early 1980s. Joe Pesci played a character based on Tony Spilotro in the 1995 movie "Casino.''

Spilotro and his brother, 41, were last seen alive on June 14, 1986. Their badly beaten bodies were found buried in an Indiana cornfield eight days later.

Eleven defendants formed the backbone of the Chicago mob by allegedly participating in illegal conduct such as extorting "street taxes" from businesses to allow them to operate; running sports betting and video poker machines; loan sharking; extortion; threats and violence.

The indictment seeks forfeiture of $10 million in alleged racketeering proceeds from the 11 men and the Marcello brothers' business, M&M Amusement.

Three suspects were not indicted for racketeering conspiracy, but instead face charges of illegal gambling or tax fraud conspiracy.

The mob of Al Capone and Frank Nitti has long been entrenched in Chicago with its tentacles reaching into hallways of unions, casinos and police departments. In fact, the indictment alleges that two retired Chicago police officers aided the outfit

Retired officer Anthony Doyle, known as "Twan," is accused of being a mob mole inside the police department. He allegedly worked for Frank Calabrese Sr., keeping him informed of law enforcement's investigation into the murder of John Fecarotta, according to the indictment.

The other retired officer, Michael Ricci, is accused of working for the mob while he was a Cook County Sheriff's officer, passing messages from the jailed Frank Calabrese Sr. to other members of the mob. He is accused of lying to the FBI on behalf of the mob.

After a lengthy investigation, FBI and the IRS agents today began arresting the 14 suspects in Arizona, Florida and Illinois.

The indictment gives chapter and verse on the structure and chain of the mob's chain of command and how the crews carried out its criminal activities. The crews are known by their geographic locations and included Grand Avenue, Melrose Park, 26th Street, Elmwood Park, Rush Street and Chicago Heights.

The nine-count indictment was returned by a federal grand jury Thursday and unsealed today. The investigation started with 18 previously unsolved murders and one attempted murder between 1970 and 1986, all in the Chicago area except for one slaying in Arizona.

"What makes this indictment significant to us is for the first time we have the heads of multiple crews indicted in one indictment," said Robert Grant, special agent in charge of the FBI's Chicago office.

Referring to the mob as "LCN," for La Costa Nostra, Grant said, "This is the first indictment that I can recall that involved so many murders, which really gets at the heart of what LCN is, which is a bunch of murderous thugs."

Today's arrests, he added, will have a "significant impact" on organized crime by cutting its numbers in the region.

"From everything we've learned, the LCN has been reduced to six crews from four," Grant said. "We now believe there are four crews operating in the Chicago areathe Elmwood Park crew, the South Side 26th Street crew, the Grand Avenue crew and the Melrose Park- Cicero crew. Current membership from what we can estimate is over 100 members and associates."

Arrested in Illinois were:

James Marcello, 63, of Lombard, and his brother Michael Marcello, 55, of Schaumburg.

Nicholas Ferriola, 29, of Westchester.

Joseph Venezia, 62, of Hillside.

Thomas Johnson, 49, of Willow Springs, and his nephew Dennis Johnson, 34, of Lombard.The defendants were expected to appear this afternoon before U.S. District Judge James B. Zagel, the U.S. attorney's office said.Another defendant, Frank Saladino, of 59, was found dead of apparent natural causes in a hotel room in Hampshire, in rural Kane County. About $25,000 in cash and $70,000 in checks were found with the man's body, officials said. Ricci, 75, is currently living in Streamwood and was expected to voluntarily surrender to the FBI. Doyle, 60, of Wickenburg, Ariz., was arrested in Arizona.Frank "The German" Schweihs, 75, of Dania, Fla., and formerly of Chicago, is at large and being sought in Florida, authorities said.Three other defendantsFrank Calabrese Sr., 68, of Oak Brook, his brother Nicholas W. Calabrese, 62, of Chicago and Paul "The Indian" Schiro, 67, of Phoenixalready were in federal custody.Eleven of the defendants were charged with conspiracy, including conspiracy to commit murder and attempted murder, in connection with illicit organized crime activities including loan sharking and bookmaking.All 11 also face charges including obstructing justice, extorting "street taxes" from businesses, sports bookmaking, operating video gambling machines, making "juice loans" charging ruinous interest rates and using extortion, threats, violence and intimidation to collect on those loans.The Associated Press contributed to this story.